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Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Disclosure of IncomeTax [abstract]  
Income before taxes
(USD millions)
2020
2019
2018
Switzerland
9 786
8 097
11 887
Foreign
92
843
2 208
Income before taxes from continuing operations
9 878
8 940
14 095
Current and deferred income tax expense
(USD millions)
2020
2019
2018
Switzerland
– 932
– 1 186
– 615
Foreign
– 1 168
– 961
– 988
Current income tax expense
– 2 100
– 2 147
– 1 603
Switzerland
– 137
– 93
– 120
Foreign
430
447
428
Deferred tax income
293
354
308
Income tax expense from continuing operations
– 1 807
– 1 793
– 1 295
Analysis of tax rate
(As a percentage)
2020
2019
2018
Applicable tax rate
13.6
11.7
14.3
Effect of disallowed expenditures
4.6
4.8
1.7
Effect of utilization of tax losses

brought forward from prior periods


– 0.3


– 0.1


– 0.1
Effect of income taxed at reduced rates
– 0.3
– 0.7
– 0.4
Effect of income not subject to tax  1
– 0.7
0.0
– 3.7
Effect of tax credits and allowances
– 2.3
– 2.3
– 2.3
Effect of release of

contingent consideration liability


– 0.2


– 0.5


– 0.2
Effect of tax rate change

on current and deferred

tax assets and liabilities  2




0.3




– 1.4




– 0.1
Effect of write-off of deferred tax assets  3
0.2
4.0
0.2
Effect of write-down and reversal of

write-down of investments in subsidiaries


– 0.8


– 0.6


0.0
Effect of prior-year items
2.3
2.2
– 0.5
Effect of other items  4
1.9
3.0
0.3
Effective tax rate for continuing operations
18.3
20.1
9.2
 1  Included in 2018 is the effect of income not subject to tax (-3.7%) arising from the portion of the non-taxable gain on the divestment of the Group's investment in GSK Consumer Healthcare Holdings Ltd. attributable to Switzerland.
 2  2019 is mainly related to the revaluation of the deferred tax assets and liabilities resulting from the tax reforms enacted in Switzerland in 2019. Refer to Note 12 for additional disclosures.
 3  2019 is primarily related to a non-cash, one-time deferred tax expense for the write-off of a deferred tax asset resulting from legal entity reorganizations.
 4  In 2020, other items (+1.9%) include changes in uncertain tax positions (+2.0%) and other items (-0.1%).

In 2019, other items (+3.0%) include changes in uncertain tax positions (+2.6%) and other items (+0.4%).